Yin Yang of Yen & Yields

The US has no longer any case to criticize Beijing over an undervalued yuan because the yuan has in fact hit new highs vs the USD and even the IMF acknowledged that yuan is no longer undervalued.

As for JPY, the US has cannot criticize the Bank of Japan for doing exactly what the Fed is doing.

As my Premium subscribers were told on Friday,Japan will make a few statements ahead of G20 meeting indicating that it is closely watching current movements in order to avoid G20 from criticizing Tokyo over yen weakness.

Such remarks will lift the yen a bit and bring all yen crosses down to an attractive territory to buy them anew.

I have longed UJ from 79.5 and still hold this position. I think this trend will be stalled at 85.5 level in short term. . But from monthly chart, I think a sHs bottom pattern has formed, and it will get to 95 level in sereval years. From fundermental view, I think this is the top of Yen, and a new era has emerged.

The Australian dollar slumped in the hours ahead of the RBA decision in a sign that the market is leaning towards a cut. AUD was the weakest performer along with NZD on Monday while the US dollar led the way after ISM manufacturing data. AUDNZD Premium is the sole Aussie trade currently in progress ahead of the RBA decision. 1 of the 3 GBPUSD longs was stopped out, whhile the remaining GBPNZD hit its final target.

The CFTC data we wrote about to start the week showed a shift into Australian dollar shorts and that continued to be the theme on Monday. AUD/USD slumped by as much as a half-cent on the day and finished near the lows.